Cryptocurrency market turmoil
October 2025 has lived up to its ‘RockTober’ reputation, delivering a rollercoaster of heightened volatility that has tested investors across multiple asset classes.
For the cryptocurrency sector, the month began with euphoric highs before spiralling into a dramatic flash crash that wiped out billions in market value. The turbulence has not been limited to digital currencies; it has also affected the United States (US), regional banks, and precious metals markets.
Massive market wipeout and the safe haven paradox
Cryptocurrency’s troubles began on 10 – 11 October, when a sudden flash crash erased more than $370 billion of market capitalisation in hours. Triggered by US President Donald Trump’s surprise announcement of escalated tariffs on Chinese imports, the event ignited a cascade of liquidations across leveraged positions, marking the largest 24-hour wipeout in cryptocurrency history.
Bitcoin (BTC) plunged from a pre-crash high near $122,500 to an intraday low below $110,000, a drop of over 10%, while Ethereum (ETH) fared worse, sliding roughly 20% from $4400 to an intraday low near $3500.
The irony is that cryptocurrencies and precious metals are often touted as safe havens against fiat depreciation and geopolitical shocks. Both asset classes rallied spectacularly in preceding months, drawing waves of fear of missing out (FOMO) buying and overextended leveraged positions, setting the scene for this month’s pullback.
Market sentiment and future outlook
Sentiment remains cautious, with concerns mounting regarding what might be the next overextended domino to fall. Bitcoin is down 4.86% month-to-date, surrendering nearly all of September’s 5.86% advance, while Ethereum has slid 6.51% this month after a 5.64% decline in the prior month.